Private Capital Boom to Exceed $30tn by 2030 as Dubai Cements Global Wealth Hub Status…

UAE News:

UAE real GDP grew by 3.9% YoY to AED 455bn in Q1 2025, with the non-oil sector growing at a faster pace (5.3% to AED 353bn), signalling a robust economic momentum. Contribution of non-oil sector activity to real GDP jumped to a record high of 77.3% in Q1, and the fastest growth rates can be seen in manufacturing (7.7%), finance & insurance and construction (both at 7.0%) as well as real estate (6.6%).

The UAE Central Bank increased its gold holdings by 26.3% year-to-date to USD 7.9bn in Jan-May 2025, in line with global central banks' moves to hedge against inflation, forex volatility and geopolitical risks.

Non‑oil trade between the UAE and India surged by 19.7% YoY to USD 65bn in 2024, underscored by the CEPA that came into force in May 2022. Among the highlighted successful initiatives are cross-border payment integration as well as the India-UAE Start-Up Series, launched to help entrepreneurs access each other’s markets among others.

The UAE was the leading foreign investor in Morocco last year, committing USD 310mn or roughly 18.9% of Morocco’s total net FDI (up 57.8% YoY).

Majid Al‑Futtaim, one of the leading mall operators in the UAE, reported a 23% rise in net profit excluding valuation and tax to AED 1.3bn in H1‑2025. This was despite a 1% decline in retail revenue “due to softness in its brick-and-mortar business and the ongoing impact of geopolitical tensions on consumer sentiment in certain markets”, thanks to strong performance in real estate (net revenue up 14%) and entertainment sectors (net revenue up 11%).

DIFC’s new report shows private markets will exceed $30tn by 2030 as global wealth hits $471 trillion, reinforcing Dubai’s rise as a private capital hub.

MENA News:

Egypt’s Ministry of Planning disclosed plans to raise investments into the electricity and renewable energy sector to EGP 136.3bn in the fiscal year 2025-2026, nearly double the EGP 72.6bn earmarked in the previous fiscal year: public investment accounted for around 73% of this total, with state-controlled holding companies’ share at approximately 45% of the public investment. Egypt is also accelerating its regional energy integration, targeting electricity exports to the tune of 3.9 GW by 2025-2026.

Lebanon’s PMI jumped to a six-month high and moved into an expansionary zone in August, clocking in a reading of 50.3 (Jul: 48.9), thanks to stronger output and new orders supported by domestic demand as export sales declined. Input costs were the softest since the start of the year and the selling price rose at the weakest pace in a year.

Oman and Iraq signed 24 agreements and MoUs across key sectors with an aim to deepen bilateral ties and foster long-term cooperation. One notable development was the agreement to construct a 10mn barrel crude oil storage facility in Oman’s Duqm between Oman’s state-owned energy company OQ and Iraq’s State Oil Marketing Organisation.

Oman started enforcing a new law (issued in October 2024) to protect bank depositors, offering compensation up to OMR 20k (approximately USD 52k) per affected customer in the event of a bank default: this will boost investor confidence. The Central Bank of Oman established a five-member board to manage the compensation fund’s assets: the board can authorise investing funds in government bonds, sukuk, and other secure financial instruments.

Syria exported 600k barrels of heavy crude oil – its first official crude oil export shipment in 14 years – marking a significant milestone in its energy sector. Though a far cry from the 380k bpd exported in 2010, the shipment bound for Egypt underscored Syria’s efforts to revive its oil industry amidst ongoing challenges.

Expatriates represented close to 78% of the GCC workforce in Q2 2024, with the total labour force at 24.6mn, according to the GCC Assistant Secretary General for Economic and Development Affairs.

OPEC+ agreed to increase oil production by 137k barrels per day starting in October 2025. This decision comes amid concerns of a possible oil glut during winter in the northern hemisphere and an anticipated slowdown in global demand.

FDI inflows into Saudi Arabia increased by 24% to SAR 119.2bn (USD 31.8bn) in 2024, according to the Ministry of Investment. With FDI outflows rising to USD 10.4bn, net inflow stood at a total of USD 21.3bn – slightly down on last year, but the fifth-highest figure on record. Cumulative FDI stock nearly doubled to SAR 977.3bn (USD 260.5bn) in 2024, versus SAR 501.8bn in 2017. The manufacturing sector was the biggest single recipient of FDI, followed by wholesale and retail trade and construction.

Saudi Investment Minister projected a sharp ramp‑up in the relocation of regional headquarters: currently hosting 660 RHQs, it crossed the target of 500 by 2030, and the aim is for this to reach 1,000+ “within a few years”. He also disclosed that foreign companies are estimated to incest SAR 500bn in the country over the coming years.

About 65.4% of Saudi families own homes as of 2024, surpassing the 2025 target a year ahead of schedule. Home ownership rate has increased from 47% in 2016 and the aim has been revised upward (70% home ownership rate by 2030). However, rising urban property prices (especially in main cities such as Riyadh) highlight affordability challenges.

Saudi Arabia and the UK announced joint investments worth GBP 360mn (USD  445mn), focused on clean energy, professional and financial services. These projects are expected to create 187 jobs across both countries (97 in the UK and 90 in Saudi Arabia), illustrating mutual gains in employment and skills transfer. Education and skills development were also prioritised, with over ten new initiatives (e.g. Cambridge University Press and Assessment plans to open an office in Riyadh).

Japanese firms have invested about SAR 23.6bn (USD 6.28bn) into Saudi Arabia, with 18 companies setting up regional headquarters.

Global News:

Global equities posed a mixed picture: US stocks touched record highs during the week that ended with weak nonfarm payrolls data feeding expectations of a Fed rate cut; Europe’s performance was quite muted; a US presidential executive order lowering tariffs on Japan’s automobile imports saw shares of the sector tick up.  Regional markets were mostly down on weak oil prices. Among currencies, the dollar fell sharply after payroll data, while worries about the Fed’s independence are rubbing off on the global standing of the USD. Oil prices ticked lower ahead of the OPEC+ meeting over the weekend – where a decision was made to further increase production targets. Gold prices crossed record highs given uncertainty related to US tariffs and trade, as well as questions related to the independence of the Fed (central banks are stocking up on the metal).

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SOURCE:
Nasser Saidi & Associates

Arabian Business